California Expands Pay Data Reporting Obligations Under SB 464

On October 13, 2025, California Governor Gavin Newsom signed Senate Bill (SB) 464 into law as part of California’s broader effort to advance pay equity and transparency. SB 464 amends Government Code section 12999 and introduces stricter compliance obligations, enhanced penalties, and broader job categorization requirements. These changes will take effect in phases beginning January 1, 2026, and January 1, 2027. 

California currently requires private employers with 100 or more employees to submit annual pay data reports to the California Civil Rights Department (CRD). These reports include:

• Employee counts by race, ethnicity, and sex across 10 job categories (aligned with EEO-1 reporting);
• Pay distribution within federal pay bands;
• Mean and median hourly pay rates by race, ethnicity, and sex; and
• Total hours worked.

Non-compliance has historically carried discretionary penalties of $100 per employee ($200 for repeat violations).  

The amended law significantly expands the state’s pay data reporting requirements for employers. Key provisions include:

• Mandatory Penalties (Effective Jan. 1, 2026):  Courts must impose civil penalties if the CRD requests enforcement. For example, an employer with 500 employees that fails to file could face $50,000 to $100,000 in fines. Penalties may also apply to labor contractors that fail to provide required data.
• Data Storage Requirements (Effective Jan. 1, 2026): Employers must store demographic data collected for reporting separately from personnel records.
• Expanded Job Categories (Effective Jan. 1, 2027): The current 10 EEO-1 job categories will expand to 23 categories based on the Standard Occupational Classification (SOC) system. Examples include “Chief Executives,” “Computer and Mathematical Occupations,” and “Health Care Practitioners and Technical Occupations.”

While SB 464 does not alter the underlying purpose of pay data reporting, it substantially increases compliance complexity and enforcement risk. Employers will need to:

• Remap roles to the 23 SOC-based categories for the 2027 reporting cycle;
• Coordinate with labor contractors to ensure timely and accurate data submission;
• Implement systems to segregate demographic data from personnel files; and
• Prepare for mandatory penalties for non-compliance.

Employers should consult with their Payne & Fears LLP attorney to assess the impact of SB 464 on their operations and develop a compliance roadmap well before the 2026 and 2027 deadlines.